No Evidence The Child Tax Credit Expansion Had An Effect On The Well-Being And Mental Health Of Parents

No Evidence The Child Tax Credit Expansion Had An Effect On The Well-Being And Mental Health Of Parents

Benjamin Glasner, Oscar Jiménez-Solomon, Sophie M. Collyer, Irwin Garfinkel, and Christopher T. Wimer

Media report

HealthAffairs

2022

In 1997 the US established the Child Tax Credit (CTC), which offers payments to parents of dependent children to help defray child-rearing costs. In 2021 a temporary expansion to the CTC increased the size of payments, extended payments to families with low or no earnings, and distributed payments monthly instead of annually. Quasi-experimental evidence from the US and experimental evidence from low- and middle-income countries shows that moderate-to-large cash transfers improve subjective well-being and mental health. We estimated the CTC’s expansion’s effects on the subjective well-being and mental health of adult recipients, using data from the Understanding America Study, a nationally representative survey with more than 7,000 respondents and more than 2,700 unique respondents with children. We found no evidence that the CTC expansion had a significant short-term impact on measures of life satisfaction, anxiety, and depression symptomology among adult recipients. We speculate that the null effects may be due to the expansion’s temporary nature.